# Valero Energy Corporation (VLO) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/VLO/thesis · /stocks/VLO/memo

## Financial Snapshot

---
ticker: VLO
step: 04
generated: 2026-05-12
source: quick-research
---

### Valero Energy (VLO) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | YoY |
|--------|--------|--------|--------|-----|
| Revenue | $176.4B | $144.8B | $129.9B | -10.3% |
| Gross Margin | ~6.5% | ~6.1% | ~4.0% | -2.1pp |
| Operating Margin | ~7.3% | ~7.0% | ~2.8% | -4.2pp |
| Net Income | $11.5B | $8.8B | $2.8B | -68% |
| EPS (diluted) | $29.04 | $24.92 | $8.58 | -66% |

*Note: FY2022 was an exceptional year due to record crack spreads post-Russia/Ukraine invasion. FY2023 normalized with strong but less extraordinary margins. FY2024 saw significant refining margin compression as global refined product oversupply, rising refinery utilization in Asia/Middle East, and slowing fuel demand weighed on crack spreads. Net income declined ~68% from FY2023 to FY2024.*

#### Cash Flow & Balance Sheet (FY2024)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$3.5B |
| Free Cash Flow | ~$2.4B |
| Cash & Equivalents | ~$3.3B |
| Total Debt | ~$9.0B |

#### Key Ratios (approximate)
- P/E: ~20x (FY2024 trough EPS) | EV/EBITDA: ~8x | FCF Yield: ~5%
- Normalized P/E: ~7-8x (FY2023 earnings) | Dividend Yield: ~2.8%
- Revenue Growth (FY2024): -10.3% (driven by lower crude + product prices)

#### Growth Profile
Valero's revenue is primarily driven by crude oil and refined product prices rather than volume growth. The company's refinery throughput capacity (~3.2M bbl/day) is relatively stable; earnings growth comes from: (1) margin cycle recovery as crack spreads normalize, (2) renewable diesel/SAF volume and LCFS/RIN economics, (3) operational efficiency improvements (FCC optimization, energy savings), and (4) share repurchases that amplify per-share EPS. The company maintains a disciplined 40–50% of operating cash flow payout target (dividends + buybacks). Recently raised quarterly dividend from $1.13 to $1.20/share.

#### Forward Estimates
- FY2025E: Revenue ~$125–135B (lower crude prices); EPS consensus ~$10–14 (dependent on crack spread trajectory)
- FY2026E: Earnings recovery expected if refining margins normalize; $2.4B capex budget targeting renewable fuels and refinery optimization
- Q2 2025 refining margin: ~$12.35/barrel (vs. trough levels in late 2024) — showing margin recovery early-to-mid 2025

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/VLO/fundamental

## Navigation

- Overview: /stocks/VLO
- Financials (this page): /stocks/VLO/financials
- Thesis: /stocks/VLO/thesis
- Investment Memo: /stocks/VLO/memo
- Coverage universe: /stocks